Tech Hot – Gold Dull – Japan 4.8x The Index

Fri 02 Feb 2024

By Brian Dennehy

Access Level | public

Market commentary


quoteNo action on interest rates cuts this week, but hope abounds as inflation, on all measures, is heading in the right direction in the US, EU, and UK. Meantime, the mania persists in US tech, and the trick is not to be sucked in, unless you are very fleet of foot.

This month’s What’s Hot fund edition highlights the sharp moves in tech and tech-biased funds over the last month. It has the feeling of 1999, and we know how that ended. More interesting was the showing of a Japan fund, an area of considerable interest as explained in Japan Blossoming.

In contrast, China struggled again, which won’t surprise you if you have been looking at the headlines. The surprise amongst the duds is the gold funds. Remember that these funds are in the shares of gold mining companies, and the gold price itself has been nothing like as volatile. If the gold price keeps moving up as in recent days, there should be a strong bounce from these funds.

What’s Hot sector edition again shows tech and US sectors. What is much more interesting, for those looking beyond that mania, is the appearance of Japan and the Global Equity Income sector.

Three Dynamic Portfolios are up for review this month.  All have achieved positive returns, Dynamic World ex-UK being the best, up 7.49%. 

Dynamic Japan underperformed the index by “only” growing 4.5% in 3 months, but the longer-term performance remains impressive, up 4.8x the index since inception. 

Last and definitely not least, Dynamic UK Blended was up a chunk more than the index over 6 months, and is also up a mouthwatering 4.7x the FTSE 100 since inception in February 2000. The latest fund selections are very interesting.

Have a great week.


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